No more cash payments likely at highway toll gates from April 1
The proposed measure aims to consolidate the gains made under Electronic Toll Collection (ETC) and further strengthen operational efficiency and transparency at toll plazas.
By Newsmeter Network
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New Delhi: Aiming for a fully digital tolling system, the National Highways Authority of India (NHAI) is contemplating discontinuing cash payments at all National Highway fee plazas across the country from April 1.
1,150 fee plazas may go online
If implemented, toll payments at more than 1,150 fee plazas on National Highways and Expressways will be processed exclusively through digital modes such as FASTag and Unified Payments Interface (UPI).
Digital ecosystem will help reduce congestion, says govt
The proposed measure aims to consolidate the gains made under Electronic Toll Collection (ETC) and further strengthen operational efficiency and transparency at toll plazas.
According to an official statement issued on Friday, the transition to a cashless system is expected to improve lane throughput, reduce congestion and ensure greater consistency in toll transactions.
The initiative is also designed to enhance the overall ‘Ease of Commuting’ for highway users.
FASTag achieves 98% penetration
Over the past few years, the RFID-enabled FASTag system has significantly transformed toll collection practices in India.
With over 98 per cent penetration, the majority of toll transactions are already processed electronically, allowing seamless and contactless passage through toll plazas.
In addition to FASTag, UPI payment facilities have also been made operational at National Highway toll plazas, providing commuters with instant and accessible digital payment options.
Higher charges for non-digital payments
Under existing National Highway fee rules, vehicles entering a toll plaza without a valid and functional FASTag are required to pay double the applicable user fee if they opt for cash payment.
Commuters who choose to pay via UPI are charged 1.25 times the standard toll fee for their vehicle category. These measures have been part of the broader effort to discourage cash transactions and promote digital payments.
Cash payments lead to longer lanes
Plaza-level assessments have indicated that cash transactions often lead to longer waiting times, congestion during peak hours and transaction-related disputes.
Officials believe that eliminating cash payments altogether will streamline operations, improve traffic management and minimise delays.
The move aligns with NHAI’s broader objective of developing a technology-driven, high-efficiency National Highway network that delivers faster and more seamless services to commuters across the country.
